Kokesh v. SEC

(United States Supreme Court) – In a case arising out of an SEC enforcement action, alleging that petitioner violated various securities laws by concealing the misappropriation of money from business-development companies, and seeking monetary civil penalties, disgorgement, and an injunction barring petitioner from future violations, the Tenth Circuit’s judgment — that 28 U.S.C. section 2462’s 5-year limitations period applied to the monetary civil penalties but that section 2462 did not apply because disgorgement was neither a penalty nor a forfeiture — is reversed, where because SEC disgorgement operates as a penalty under section 2462, any claim for disgorgement in an SEC enforcement action must be commenced within five years of the date the claim accrued.